Mongolian Joint Venture

London Asia Capital PLC
06 March 2006


Embargoed: 7am, 6 March 2006

                            London Asia Capital Plc

                      Launch of Mongolian Joint Venture and
                 appointment to advise Northeast Asia resources

London Asia Capital plc ("London Asia"), the Greater China focused investment
and merchant banking group, announces the creation of London Asia Capital
Mongolia Ltd ("London Asia Mongolia"), a 60/40 joint venture with Capitron Bank
of Mongolia ("Capitron Bank").


London Asia Capital Mongolia Ltd:

The joint venture has been formed to explore opportunities in banking, insurance
and capital market operations in Mongolia. Under the joint venture agreement,
London Asia Mongolia has the opportunity to become the exclusive corporate and
financial adviser to companies in Mongolia when they look to raise overseas
capital via an IPO, private placement or trade sale.

Capitron Bank is a licensed commercial bank with clients primarily in the mining
and financial services sector. It began its operations as a private bank in 1991
and has grown to an organization with 108 employees. Its total assets were USD
21.7 million by the end of 2003. As an affiliate member of MasterCard
International Company, Capitron Bank is now the third MasterCard issuer in
Mongolia. In July 2003, it joined the SWIFTNet international payment network.

London Asia has also been appointed as corporate finance advisor by Capitron
Bank in connection with Capitron Bank's restructuring, mergers,
internationalisation and fund raising. The agreements were signed by London
Asia's non-executive Director and current Lord Mayor of London David Brewer. The
Advisory committee of London Asia Mongolia includes several senior Mongolian
executives, including former Prime Minister Mr. Sharav Gungaadori.


London Asia Capital Mongolia appointed as Adviser to Northeast Asia Resources:

Northeast Asia Resources Company, a holding company focusing on mining
investment in Mongolia, has appointed London Asia Mongolia to advise on the
possibility of listing in the UK. Northeast Asia Resources owns a number of
large mines including Gold, Coal and Uranium as well as Oil properties.

Jack Wigglesworth, Chairman of London Asia, said: "This new joint venture takes
us into a region where we have previously not been represented, with a very
strong, established local partner. Mongolia's vast natural resources and
relatively undeveloped financial system creates an ideal environment for London
Asia, and should produce a number of interesting transactions going forward,
such as our appointment to North East Resources. I am delighted that these
agreements were concluded as part of the Lord Mayor of London's trip to
Mongolia, which has given all of us that attended an insight into the untapped
opportunities in this vast country."


For further information please visit www.londonasia.com or contact:

Simon Littlewood                                   John West/Matt Ridsdale
London Asia                                        Tavistock Communications
Tel: [phone]                                 Tel: [phone]


Notes to Editors:

Mongolia, which lies between China and Russia, has extensive mineral deposits.
Mongolia has a population of 2.8 million. The contribution to GDP of different
sectors has changed substantially over the last decade. Its services sector
displaced agriculture to become the largest sector accounting, for over 60% of
GDP. Since 2002, the economy has been shifting from a centrally planned to a
market-based economy. A series of reforms in financial services are taking place
in Mongolia in order to establish the foundations of a market-based financial
system

Mongolia has extensive mineral deposits and most recent foreign investment has
been in the mining sector. Mining accounts for a large portion of Mongolia's
total industrial exports and contributed 12.7% to GDP in 2003. Approximately 200
deposits of metals and minerals are currently mined in Mongolia. The country's
annual coal capacity of eight million tons could be greatly increased with
foreign investment in equipment, maintenance and safety. There are 22 known oil
fields, 13 of which are partially contracted by firms from the UK, Canada,
Australia and the United States.








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